Shore Capital is urging Ramsdens (AIM:RFX) shareholders to accept FirstCash Holdings' recommended cash offer of 600p per share, calling the terms "highly compelling" in a note dated 23 June.
Ramsdens, a UK-listed pawnbroking, jewellery and foreign-exchange retailer, is valued at approximately £206m under the offer, with shareholders also permitted to retain a 9p interim dividend, lifting total implied consideration to 609p per share.
The 609p total represents a premium of roughly 35% to Ramsdens' closing price of 453p the previous day, a valuation that Shore Capital analyst notes sit broadly in line with the circa 12x earnings multiple implied by FirstCash's earlier 661p acquisition of H&T, and well above the roughly 7x multiple at which Ramsdens had been trading.
Shore Capital's note carries no explicit price target, but its recommendation is unambiguous: "we would strongly recommend that investors accept the offer."
